Charles R. King, Plaintiff Below, Appellant v. Verifone Holdings, Inc., Defendant Below, Appellee

Summary

The Supreme Court of Delaware held that a stockholder's prior filing of a derivative action does not, by itself, eliminate the stockholder's proper purpose for later seeking books and records under Section 220. Because the earlier derivative action had been dismissed without prejudice and with leave to amend, the requested inspection could properly be used to develop particularized facts supporting demand futility. The court reversed the Court of Chancery's categorical rule barring such inspection solely because the derivative action was filed first.